' Lehman Dairy leases its milking equipment from Chavez Finance Company under the following iea 5e terms. The lease term is 8 years. noncancelable, and requires equal rental payments due at the beginning of each year starting March 1, 2022. The equipment has a fair value of $450,000, and cost Chavez $325,000, at the inception of the lease (March '1, 2022). Lehman Dairy has the option to purchase the equipment for $10,800, at the end of the lease. This represents a signcant discount on the equipment. The estimated economic life of the equipment is \"10 years, and a residual value (which is guaranteed by Lehman Dairy) of $30,000. if the purchase option is not exercised, Lehman Dairy expects to pay $18,000 under the guaranteed residual Value. The lease contains no renewable options, and the equipment reverts to Chavez Finance Company upon termination of the lease, if the purchase option is not exercised. Lehman Dairy's incremental borrowing rate is 8% per year. Chavez's implicit rate is 6% and is , ' known. to Lehman Dairy. :7;_.Col[ectability of the payments is reasonably predictable, and there are no important uncertaintiessurrounding the costs yet to be incurred by the lessor. _' Present vaiue'of 1 for 8 periods at 6% ' 0.62741 g Present value of}. for 8 periods at 8% 0.5402? Present value of an ordinary annuity for 8 periods at 6% 16.20979 Present value of an ordinary annuity for 8 periods at 8% 5.74564 . Present value of an annuity due for 8 periods at 6% 6.58238 3 Present value of an annUIty due for 8 periods at 8% 620537 , _; Paccountlng perlod ends on December 31) ' 'th required payment Chavez Finance requires to earn the Fair Value of the _ , ___In [law Is able to negotiate the payment down to $67 000 per year Compute the sentvalue :of the mInImuIm lease payments for both the lessee and lessor. 1 at type of lease\" Is this for the lessee? For the less-or? \"P- page the journal entries Chavez would make In the rst full calendar year of the lease {',_'12023 December 31 2023) related to the lease arrangement. re'thegiournal entries Lehman would make in the